Tax Withholding Calculator
Calculate federal and state tax withholding from your paycheck. Estimate your take-home pay and plan for tax obligations.
Understanding Tax Withholding
How Tax Withholding Works
Tax withholding is the amount of federal and state income tax your employer deducts from your paycheck. The amount depends on your income, filing status, and the number of allowances you claim on your W-4 form.
- • Federal Income Tax: Based on tax brackets and filing status
- • State Income Tax: Varies by state (some states have no income tax)
- • Social Security Tax: 6.2% on wages up to $160,200 (2024)
- • Medicare Tax: 1.45% on all wages plus 0.9% on high earners
Optimizing Your Withholding
The goal is to have roughly the right amount of tax withheld so you don't owe a large amount at tax time or receive a very large refund.
- • Too Much Withheld: Large refund, but you gave the government an interest-free loan
- • Too Little Withheld: You may owe taxes and penalties at filing time
- • Just Right: You break even or owe/receive a small amount
💡 Tax Planning Tips
• Review Annually: Check your withholding when your life situation changes
• Major Life Events: Marriage, divorce, new baby, or job change may require W-4 updates
• Side Income: If you have freelance or investment income, consider additional withholding
• Year-End Planning: Use this calculator to estimate taxes owed and plan accordingly
Frequently Asked Questions
How accurate is this tax withholding calculator?
This calculator provides estimates based on 2024 tax brackets and standard deductions. Actual withholding may vary due to specific tax situations, state tax variations, and other factors. For precise calculations, consult a tax professional.
What's the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions. Net pay (take-home pay) is what you receive after taxes, Social Security, Medicare, and other deductions are subtracted from your gross pay.
Should I claim more or fewer allowances?
More allowances mean less tax withheld (larger paycheck, potential tax owed). Fewer allowances mean more tax withheld (smaller paycheck, potential refund). The right number depends on your tax situation and preferences.
What is additional withholding and when should I use it?
Additional withholding is extra tax taken from your paycheck beyond the standard calculation. Use it if you have side income, want to avoid owing taxes, or prefer getting a refund rather than owing money.
How often should I check my tax withholding?
Review your withholding annually and after major life changes like marriage, divorce, having a child, buying a home, or changing jobs. The IRS recommends checking your withholding at least once per year.